Home prices within the Charlotte region continue to rise due to inventory shortages and increase in demand, with the current average sales price boosting six percent last month to $218,673 as compared last year.
According to the Charlotte Regional Realtors Association, the median sales price of $175,000 increased 6.1 percent within the same period. Home sellers got 93.5 percent of the asking price, which has risen 0.9 percent from 2014.
Compared to last year, new listings have dropped 2.1 percent causing a decrease of 19.3 percent to 12,301 properties for sale in the Charlotte region. This represents a 3.9-month supply, which is considered an extremely low level never experienced recently.
Such occurrence can take place due to different factors such as, tightening mortgage-eligibility standards, homeowners waiting for home values to increase enough to recover what they lost during the decline of the market, increasing number of Charlotte immigrants, a demand increase and rising rates of apartments and home rental, which eventually lead to people opting for home ownership.
Compared to February 2014, the Charlotte area has seen a year-over-year sale increase of 20.8 percent last month, with 2,263 homes sold from 1,874. However, January home sales dropped 4.1 percent. Aside from this, last month’s preliminary pending sales increased 33.9 percent from February 2014.
The increase in annual sales can be brought about by a variety of factors, which include historically low mortgage rates, recent increase in job opportunities and the recent drop of the Federal Housing Administration’s annual mortgage insurance premium from 1.35 percent to .85 percent.
According to bankrate.com, the rates for 30-year fixed mortgages with zero points within the Charlotte region was between 3.92 to 4.21 percent, while the national rate was 3.93 percent.
“Despite low inventory levels, contract executions and closing activity remain strong,” said President of the CRRA and the Carolina Multiple Listing Services Inc Maren Brisson-Kuester. “This bodes well for our spring selling season and perhaps indicates an early start despite the weather. With the limited number of homes on the market, we expect to see steady price increases to continue over the next few months.”
As for the average number of days a house was up for sale until its closing date within the Charlotte area has declined from 141 days in February 2014 to 139 days in February 2015. The average number of days of a property on the market including those active and under contract but being shown was 80, which is down 22 days a year earlier.
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